Moreover, additional contractual provisions have been stipulated for the following members of the Board of Management: The Board of Management contract with John Allen provides the option of terminating his employment contract, which currently extends until 31 December 2010, upon six months’ notice as of the end of the quarter, though no earlier than 30 June 2009. Mr Allen has made use of this option and will leave the company at his own request as at 30 June 2009. His contract contains a non-compete clause effective for two years after cessation of the contract. He will receive 50% of his basic salary for the duration of the two-year period. Any other income exceeding half of the basic salary will be credited against any such amount.
Dr Frank Appel, John Allan and John P. Mullen will receive their contractual remuneration until the end of the regular term of their contracts in the event their Board of Management contracts are terminated prematurely by Deutsche Post AG for good cause, provided such cause is not related to a serious breach of duty. Apart from the aforementioned arrangements, no member of the Board of Management has been promised any further benefits upon termination of employment.
Dr Klaus Zumwinkel left the Board of Management effective 18 February 2008. His contract of employment was terminated as at 29 February 2008 (end of day). After such date, he did not receive any basic salary or bonus share for the remainder of his original contract term (until 30 November 2008). His pension entitlement is calculated on the basis of the original contract term. As compensation for a non-compete clause effective for one year following the cessation of his contract, Dr Klaus Zumwinkel was granted 385,000 SAR in Tranche 2008. As at the issue date (1 July 2008), the SAR had a fair value of €1,066,450.
Supervisory Board remuneration
In accordance with Article 17 of the Articles of Association of Deutsche Post AG as adopted by the AGM, the annual remuneration of the members of the Supervisory Board comprises a fixed component, a short-term performance-related component and a performance-related component with a long-term incentive effect.
The fixed component amounts to €20,000 and the short-term performance-related component to €300 for every €0.03 by which the consolidated net profit per share exceeds the amount of €0.50 in the financial year in question. In 2008, neither short-term performance-related remuneration nor performance-related remuneration with a long-term incentive effect was paid.
For financial year 2008, the members of the Supervisory Board are entitled to annual performance-related remuneration with a long-term incentive effect of €300 for every 3% by which the consolidated net profit per share for financial year 2010 exceeds the consolidated net profit per share of financial year 2007. The remuneration falls due for payment at the end of the 2011 AGM. Taken individually, the two variable components may not exceed the amount of the fixed remuneration of €20,000.
The chairman of the Supervisory Board receives double the remuneration, and his deputy one and a half times the remuneration. The chairman of a Supervisory Board committee also receives double the remuneration, whilst a member of a committee receives one and a half times the remuneration. This does not apply for membership on the Mediation and Nomination Committee. Members who only belong to the Supervisory Board and its committees for part of the year receive corresponding compensation on a pro rata basis. The members of the Supervisory Board are entitled to claim out-of-pocket expenses incurred in the exercise of their office. Any value-added tax on the Supervisory Board remuneration and out-of-pocket expenses is reimbursed.
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